A home equity line of credit (referred to herein as a “HELOC”) is a line of credit extended to a consumer from a lender, such as a bank, where the collateral for amounts borrowed under the line of credit is the borrower's equity in his or her home. Unlike a typical loan where the entire loan amount is deposited with the borrower at once, a HELOC sets a credit limit and a particular period of time (a “term”), and allows the borrower to draw funds from the line of credit at his or her discretion up to the credit limit during the specified term. Only those funds that are drawn from the HELOC bear interest until they are repaid, which repayment may occur at any time during the term, with minimum amounts generally due periodically depending on the terms of the HELOC. Thus, a HELOC somewhat mimics a credit card account more than a typical loan. A key difference between a HELOC and other lines of credit and loan instruments is that the underlying collateral for the loan is the home.
Many homeowners secure a HELOC with the intention of only using the borrowed funds for certain major items that are either necessary or provide considerable value, such as education, home improvements, debt consolidation, or medical bills. These borrowers also often have specific ideas about budgeting the HELOC funds and managing exactly how and when they will withdraw, spend, and repay funds from their HELOC. However, there is no readily available tool that assist borrowers with exploring the various options they have with regard to budgeting, spending, and repayment. Because their personal budgeting strategies and spending history are not integrally connected to their HELOC account, borrowers may lose sight of or inaccurately apply personal budgetary restrictions and repayment plans. Additionally, they may feel overwhelmed by the numerous statements and other paperwork relating to their various financial accounts, mortgages, and HELOC account, which can prevent them from being exposed to restructuring options and payment terms applicable to their HELOC that would help them reach their financial goals. Indeed, many borrowers may miss the opportunity to add additional credit to their HELOC in the event the value of their home increases. Accordingly, there is a need to provide methods and apparatuses that help borrowers better manage the spending and repayment of their HELOC funds, and in particular, provide borrowers with an easy way to budget and accurately track spending of HELOC funds, determine the best payment strategies and payment terms for their HELOC, and learn about other options with regard to restructuring or adding additional credit to their HELOC.